Marriott, which competed with the Anbang-led consortium for Starwood, also saw its shares drop about 4 percent in after-hours action. Starwood did not immediately respond to a request for comment.

"We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time," the consortium said in a statement. "However, due to various market considerations, the Consortium has determined not to proceed further. We thank the Starwood Board, management team and its advisors for their efforts and support throughout this process."

Solar energy firm SunEdison saw shares move lower in extended trading. The solar power company's spinoffs, TerraForm Global and TerraForm Power, are now being run by a new "office of the chairman" following the departure of Chief Executive Officer Brian Wuebbels. No reason was given for his departure.

Marvell Technology Group's stock dipped after the bell after the company announced it will miss its 10-K filing deadline for the 2016 fiscal year. The company cited changes in accounting firms and internal accounting investigation for the delay. Marvell Technology also said it expects its fiscal 2016 results to be lower than previously forecast, according to a filing.